Samriddhi Finance Financial Performance After Second Quarter Review
29th January 2026, Kathmandu
The financial landscape for finance companies in Nepal remains a complex environment characterized by tight liquidity and a cautious lending climate. Within this context Samriddhi Finance Company Limited has released its unaudited financial statements for the second quarter of the fiscal year 2082/83.
Samriddhi Finance Financial Performance
The report ending in Poush 2082 illustrates a period of stabilization as the company manages to maintain positive quarterly profitability despite significant historical headwinds. With a net profit of 22.89 million rupees for the quarter the company is showing signs of resilience although the year to date figures still reflect the broader challenges of the financial sector.
Profitability and Revenue Streams
The quarterly profit of 22.89 million rupees is a primary highlight of the Samriddhi Finance Financial Performance this period. However when viewed on a year to date basis the cumulative profit stands at a more modest 1.16 million rupees. This discrepancy is largely due to the heavy weight of operating expenses and impairment charges incurred during the first quarter. The core revenue engine of the company remains its net interest income which reached 22.61 million rupees for the quarter. This was derived from a total interest income of 66.11 million rupees against interest expenses of 43.50 million rupees. The narrow interest spread reflects the ongoing high cost of deposits which continues to pressure the profit margins of smaller finance companies across Nepal.
Non interest income sources such as fees and commissions contributed 4.17 million rupees to the quarterly total. While these streams are growing they are not yet large enough to serve as a primary driver of the bottom line. The total operating income for the quarter was recorded at 27.57 million rupees. For the company to achieve long term sustainability it will need to further diversify these revenue streams to reduce its reliance on traditional interest spreads.
Operating Efficiency and Costs
Operating expenses remain a significant hurdle for Samriddhi Finance. During the second quarter the company incurred 28.21 million rupees in total operating expenses which actually exceeded its total operating income for the same period. Personnel expenses accounted for 16.76 million rupees while depreciation and amortization added another 4.28 million rupees. High overhead costs relative to income size are common among finance companies in Nepal but they necessitate a focused approach toward digitalization and process automation to bring down the cost to income ratio in future quarters.
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Asset Quality and Risk Management
One of the most encouraging signs in the Samriddhi Finance Financial Performance is the improvement in asset quality. The non performing loan ratio has been reported at 1.49 percent a figure that is significantly lower than many of its peers in the finance category. This low ratio suggests that the management has been highly selective in its credit disbursement and aggressive in its recovery efforts. To back this up the company has maintained a strong loan loss provision coverage ratio of over 100 percent. Impairment charges for the quarter stood at 28.46 million rupees reflecting a cautious and proactive provisioning strategy aimed at protecting the balance sheet from potential future defaults.
Balance Sheet and Capital Position
The total assets of Samriddhi Finance grew to 3.60 billion rupees by the end of Poush 2082. The loan portfolio accounts for 1.97 billion rupees of this total while investment in securities stands at 275.57 million rupees. On the liability side deposits from customers reached 2.99 billion rupees confirming that the company maintains a stable level of public trust. The credit to deposit ratio is currently 72.62 percent which is well within the regulatory limits set by Nepal Rastra Bank and provides the company with ample room to expand its lending activities as market conditions improve.
The capital position of the company remains a point of focus for investors. The paid up capital is 818.91 million rupees while the total equity attributable to holders is 491.02 million rupees. The primary reason for the lower equity value relative to capital is the accumulated retained earnings loss of 617.40 million rupees. While the company is currently profitable on a quarterly basis it will take several more quarters of consistent performance to wipe out these legacy losses and begin distributing dividends to its shareholders.
In conclusion the second quarter report for Samriddhi Finance Company Limited for 2082/83 paints a picture of a company in transition. By maintaining a low non performing loan ratio and achieving quarterly profitability the institution is building a foundation for recovery. However the challenges of high operating costs and negative retained earnings remain significant. Investors will be looking for continued improvement in the return on equity which currently stands at 0.24 percent and the earnings per share of 0.29 rupees in the coming half of the fiscal year.
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